Auto Enrolment is a mandatory workplace pension scheme being rolled out by the Irish Government in 2025. It automatically enrols eligible employees into a retirement savings plan, with contributions from the employee, employer, and the State.
All employers in Ireland will be legally required to auto-enrol eligible employees. This applies to businesses of all sizes across every sector.
Employer contributions will start at 1.5% of gross salary, rising to 6% over ten years. This is matched to employee contributions, and both are subject to a cap on pensionable earnings.
If you already offer a pension that meets or exceeds the standards of the auto enrolment scheme, you may be exempt. It’s essential to review your current pension with a financial advisor to confirm compliance.
Yes, but only after six months. They will be refunded their contributions if they opt out during the allowed period. However, they will be re-enrolled automatically every two years if still eligible.
The State will contribute €1 for every €3 the employee pays into the pension – effectively offering a 33% bonus on employee contributions.
The auto enrolment pension scheme is expected to launch in 2025, with gradual onboarding of employers and workers over time.
Non-compliance may result in financial penalties, legal issues, and reputational damage. Employers must be prepared to meet their obligations under the scheme.
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